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Banking
By Anderson Kemp Banking is a valuable part of budgeting in college. Having a bank gives students a secure place to keep their money, which is important when living around several thousand other students. With more recent additions, such as online banking, students are now able to check what is going on with their account from virtually anywhere. Banking also has many other uses such as giving students the ability to obtain a check card as well as to create multiple accounts, each of which can be used differently. Locations There are eleven different banks located in the Athens Clarke county area. In addition several banks are located within walking distance of, or physically on, campus (Lending Institutions and deposits). ' Wells Fargo '- 5 locations including ATM’s at the Tate center and in the Russell lobby. Athens First Bank and Trust Company (Synovus )-''' 7 locations in Athens Clarke County and ATM in the Tate Center. 'Bank Of America : '''Bank of America has 5 locations in Athens as well as an ATM in the Tate Center. 'Suntrust - 'Suntrust has 7 locations in Athens. First American Bank and Trust - 5 locations in Athens The National Bank of Georgia - 1 location Main Street Bank(BB&T) - 2 Locations Regions Bank - 3 Locations Oconee State Bank - 2 locations The Commercial Bank - 1 Location 'Community Bank and Trust -'1 location Online Banking Online Banking is a relatively new part of the banking process. The basic idea is that one can do almost everything they can do at a branch, online. For example one can check their balance online to make sure they don't over draft. With new innovations in the field of mobile technology checking the status of an account from cell phones and other mobile devices has become far more common (''What is Online Banking). For college students this can be quite useful since there aren't always bank locations withing walking distance. Some of the key advantages of online banking that college students should know are: 'Paying bills- '''Having an online banking application on a cellphone or computer gives the user the ability to pay bills online instead of doing so at the branch or by mail (''What is Online Banking). Paying bills online is not all that new but it is something that college student may not have experienced before. Students tend to stick with debit cards to pay for things because they either don't have access to credit cards or were told by their parents to use them on rare occasion (Kemp). So the area in which this subject is most applicable for UGA students is paying for charges to the UGA account. Students are able to pay the bills on their school account by using their bank account online. As banker Mike Kemp points out, "This process differs from bank to bank but is relatively simple." '''Online Transactions- A banking transaction typically describes many different processes but in this case it refers to moving money from one account to another, whether it be from two accounts that belong to the same person or to different people. This is one of the most important tools for a college student when it comes to online banking. The simplicity and ease of online transactions allows for parents and students to manage money allotment easily. A parent can log onto a computer and send money to their student whenever it's needed. They can also set the account up to transfer money each week, month, etc. 'Convenience- '''This is a broad category that incorporates many different reasons for why online banking makes banking in general easier. The ease of access is a big reason for the importance of online banking. In most cases it is possible to access all of your different accounts (securities, Cd’s, savings accounts, checking accounts, etc) from a cell phone or computer (''What is Online Banking). An example where this could be useful for a student is when a student leaves the country, whether for a study abroad program or simply vacation. Having a bank that allows access to accounts online, which most do, gives students the ability to transfer money while in other countries. This is important because unless a bank is international there won’t be physical branches. This helps avoid some sort of monetary crisis in a foreign place. 'Disadvantages-' There are also disadvantages to online banking, but this mainly involves a learning curve (What is Online Banking). Online Banking has become so In-depth that it can be a little daunting. For students, though, this shouldn’t be as large of a problem because students don't have to deal with those processes that make it complicated, i.e. stock trading, securities, etc. Moving money between accounts and checking the balance of those accounts is relatively easy. Getting access from the bank to actually check accounts online can also be a difficult hurdle for students. The process requires a visit to a local branch where one has to meet with a clerk there who will help them set up the account. Mr. Kemp points out that, "The parent’s permission could also be necessary if the account is still registered under their name." Debit/Check Cards Having money in a bank gives students access to checking cards, which are vital in college. While carrying cash is a smart idea it tends to get spent fairly quickly. Carrying large amounts of cash can be a risk because of the number of students that are in close proximity and that could have access to another student’s dorm room. Instead simply set up a checking account with a bank which then enables the student to apply for a Debit/Check Card. Physically this card is used just like a credit card except it requires a pin. However it functions as a check. This means that it pulls money directly from the checking account. A credit card uses the money from a credit card company to pay for a purchase and if the owner of the card doesn’t pay the bill on time an interest charge is applied over time until it is paid. Mr. Kemp says, "using a checking card is less risky financially than using a credit card and gives students the ability to “carry” a large amount of money without having to physically carry cash." However it is still possible to overdraft on a checking card, which can cause the user to be charged fees by their bank. Also, Mr. Kemp notes, "it appears as if Banks may begin charging Monthly fees to debit card users to make up for losses in other areas." Multiple Accounts Banks allow clients to create multiple accounts that can be designated for different uses. For students this helps prevent overspending and budgeting in general. For example Dylan Guggenheim, a USC student, says, “I have three separate bank accounts all of which are used for different things. One is a typical savings account, another is a checking account, and lastly I have another savings account that is used specifically for travel abroad. The money in this account is set aside solely for me to use when I go to other countries on study abroad programs.” By using multiple accounts this student has budgeted money towards specific things. Works Cited "Athens-Clark County Unified Government ." Lending Institutions Offices & Deposits. N.p., n.d. Web. 4 Nov 2011. . "Bankrate." What is Online Banking?. N.p., n.d. Web. 4 Nov 2011. . Guggenheim, Dylan. "Banking Accounts." Personal Interview by Anderson Kemp. 11/3/2011. Kemp, Mike. "Banking for College Students." Personal Interview by Anderson Kemp. 11/5/2011. Category:Online Banking Category:Debit Cards Category:Budgeting